Int'l footwear sales dip 21% in ‘23, valued at $1.3 billion
CAMBODIA generated over $1.3 billion from the export of footwear, gaiters and related articles to international markets in 2023, representing a decline of more than 21% compared to 2022.
According to the General Department of Customs and Excise (GDCE), exports categorised under Harmonised System (HS) Code 64, which includes the aforementioned goods, totalled $1.36 billion, a decrease of 21.4% from $1.74 billion in 2022.
The exports accounted for approximately 6% of the country’s total exports, which amounted to $22.64 billion in 2023. In 2022, the value of Code 64 goods constituted 7.8% of the country’s $22.25 billion in total exports.
Ly Khun Thai, president of the Cambodian Footwear Association (CFA), told The Post that crises caused by geopolitical conflicts, particularly the Russia-Ukraine war, have profoundly impacted global economic growth, leading to reduced spending and travel.
"When there is less travel, the demand for shoes also decreases," he explained.
He added that the decline in value is partly due to a large number of orders received in 2022, resulting in a surplus of stock yet to be sold.
"Exports of footwear products fell last year due to lower overseas orders, but production capacity did not decline," said Khun Thai.
He also noted that with stocks from 2023 being released and a projection of higher global economic growth in 2024 by national and international financial institutions, the value of footwear exports in 2024 is expected to exceed that of last year.
Khun Thai highlighted that Code 64 articles produced in Cambodia are exported to major destinations such as the US, EU, Canada, the UK and regional countries.
He said Cambodian-made shoes include renowned international brands such as Adidas, Clarks and Timberland.
According to the Council for the Development of Cambodia (CDC), the government's supreme decision-making body for major investments, the number of approved projects in 2023 rose to 268, up from 186 in 2022, including investments in Code 64 products.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, stated that footwear and related items are a crucial part of the country’s trade, as they create numerous jobs for Cambodians and generate hundreds of millions of dollars annually.
He attributed the decline in demand for these goods to sluggish economic growth in the country’s trading partners and the prolonged downturn in the global tourism sector, which has lasted nearly four years.
“When the global economy is good, people travel more, leading to an increase in the demand for footwear,” he said.